Johnson & Johnson Stock: Setting the Stage for 2025 Highs

Johnson & Johnson's (NYSE: JNJ) stock price advance has been reinvigorated. The stock price rally stalled a few years ago due to the COVID-19 bubble bursting and the divestiture of Kenvue (NYSE: KVUE), but those days are behind, and business growth is still ahead. Today, Johnson & Johnson is a buy because its value, yield, and growth outlook provide a vehicle capable of market-beating returns in 2025 and over the long term. 

Regarding value, this healthcare stock is trading at 16x this year's earnings, less than half the historical average price multiple and well below the S&P 500 average. Regarding returns, Johnson & Johnson is a reliable dividend payer yielding more than 3%, more than double the broad market average, and at the high end of the historical range with a solid outlook for sustained distribution increases over the next few years. 

Johnson & Johnson Turns a Corner in Q3 2024

Johnson & Johnson turned a corner in Q3 2024 with operational growth resulting in reported growth as comps to the COVID and pre-spinoff periods lapse. Reported growth is expected to continue in Q4 and next year, accelerating in 2025. 

Regarding Q3, the company ...